Tag: risk

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Real estate fraud risk is on the rise, and victims are sounding the alarm

Real estate fraud risk is on the rise, and victims are sounding the alarm

DeBianchi Real Estate President and realtor Sam DeBianchi gives advice to millennials who are struggling to buy homes on Making Money.

Purchasing a home is an exciting milestone in a person’s life, but criminals are increasingly exploiting such transactions through real estate fraud, robbing victims who are often left with little or no recourse.

CertifID’s 2024 State of Wire Fraud report released Tuesday found that 1 in 20 Americans who bought or sold a home within the past three years have been victims of some type of real estate fraud, with the median amount in consumer losses exceeding $70,000 as a result of stolen buyer’s down payments and seller’s net proceeds.

Real estate wire fraud is surging, and victims are calling for awareness and recourse as cybercriminals become increasingly cunning. (Justin Sullivan/Getty Images / Getty Images)

The wire fraud protection company warns fraudsters have become increasingly skilled at leveraging public

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Climate Alpha founder Parag Khanna on climate change’s risk to real estate

Climate Alpha founder Parag Khanna on climate change’s risk to real estate

Parag Khanna wants to help people “future-proof” their real estate. The author of more than 20 books has long been known for his analysis and macroeconomic forecasts, and his new firm, the AI-powered analytics platform Climate Alpha, seeks to harness data to track trends in migration, climate change, and finance to know which locations will provide both resilience and profit when the world changes. He argues that the Black Swan is not the right way to think of climate risk, but rather the Green Swans are flocking, and headed straight for millions of miles of real estate.

At an estimated value of over $300 trillion, land and real estate remains the world’s most valuable asset class and yet it is directly exposed to climate change and demographic decline. As Khanna noted in his presentation to the Fortune Global Forum in Abu Dhabi, real estate is by definition “trapped and immobile.”

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Commercial real estate a bigger risk than previously thought: OSFI

Commercial real estate a bigger risk than previously thought: OSFI

Top banking regulator flags co-lending arrangements and lagging ratings changes among heightened risks

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Published Oct 12, 2023  •  Last updated 6 days ago  •  3 minute read

Canada’s top banking regulator is noticing concerning practices in the commercial real estate market. Photo by Peter J. Thompson/National Post files

Canada’s top banking regulator is flagging commercial real estate lending as a bigger risk than previously thought as higher interest rates persist and a practice known as co-lending increases.

The Office of the Superintendent of Financial Institutions warned in an Oct. 12 update to its list of the highest risks facing the sector that valuations in a fast-changing landscape could quickly become outdated and that trends including co-lending could increase default risks and recovery values.

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Commercial real estate investors risk painful losses in post-COVID world

Commercial real estate investors risk painful losses in post-COVID world

LONDON/SYDNEY, July 31 (Reuters) – Commercial real estate investors and lenders are slowly confronting an ugly question – if people never again shop in malls or work in offices the way they did before the pandemic, how safe are the fortunes they piled into bricks and mortar?

Rising interest rates, stubborn inflation and squally economic conditions are familiar foes to seasoned commercial property buyers, who typically ride out storms waiting for rental demand to rally and the cost of borrowing to fall.

Cyclical downturns rarely prompt fire sales, so long as lenders are confident the investor can repay their loan and the value of the asset remains above the debt lent against it.

This time though, analysts, academics and investors interviewed by Reuters warn things could be different.

With remote working now routine for many office-based firms and consumers habitually shopping online, cities like London, Los Angeles and New York

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Canadian bank earnings at risk from office real estate exposure

Canadian bank earnings at risk from office real estate exposure

Commercial real estate loans represent the second-largest lending exposure of Canada’s six largest banks

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Published May 08, 2023  •  Last updated 2 days ago  •  3 minute read

Bank and office towers in Toronto’s financial district. Photo by Peter J. Thompson/Financial Post

Canada’s banks may not be as exposed to commercial real estate as their counterparts in the United States, but that doesn’t mean their earnings aren’t at risk, particularly from the office segment pummelled by remote work, according to a prominent Bay Street analyst.

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